C05 l l RJ C0439 ACCOUNTANCY : PAPER II ADVANCED COST ACCOUNTING .

M.COM (Part-I)
Accountancy Group
Advance Cost Accounting
Q.P. Code :11810
(Paper – II) (May-2017)
[Time: 3 Hours] [ Marks:lOO]

Please check whether you have got the right que$tion paper.
N.B: l. All questions are compulsory.
2. Figures to the right indicate full marks allotted to the question
3. Working notes should from past of the answer.

Q.1 Prepare a Cash budget of a company for 6 months from January 2016 to June 2016, in a columnar form using 20
the following information :
Months Sales (Rs.) Materi.al (Rs.) Wages( Rs.) Production Administration Selling
overheads( Rs.) overheads (Rs.) overhead
(Rs.)
Oct, 2015 2,00,000 1,00,000 25,000 21,000 8,500 22,500
Nov, 2015 1,50,000 75,000 22,500 20,000 8,250 20,000
Dec, 2015 1,00,000 50,000 20,000 18,750 8,750 17,500
Jan, 2016 1,25,000 1,00,000 22,500 20,000 9,250 20,000
Feb,2016 1,50,000 1,25,000 25,000 21,250 9,750 21,500
Mar, 2016 2,00,000 1,50,000 27,500 22,500 9,000 23,250
April, 2016 1,75,000 1,25,000 22,500 20,000 8,750 22,750
May, 2016 1,50,000 75,000 20,000 18,750 9,250 22,000
June, 2016 1,25,000 1,00,000 22,500 20,000 9,750 21,000

Further information :-
1. Creditors allow credit period of 2 months.
2. Creditor period allowed to debtors is 3months.
3. Log in payment of wages is 1/8 month.
4. Log in payment of all overheads is 1month.
5. A sales commission of 10% on sales is to be paid in month following actual sales.
6. Interior installations to be installed in March 2016 at a cost of Rs 40,000 to be paid in monthly
instatement of Rs 20,000, starting from 1st May 2016.
7. Extension to the plant at the cost of Rs 20,000 installed in Jan, 2016. Payment to be made in Feb
2016.
8. Annual maintenance contract for plant for Rs 1,20,000 is taken to be paid monthly equally from
January, 2016.
9. Income Tax Rs 2,00,000 is due in April 2016.
10. Dividend on investments is expected in May 2016, Rs. 1,75,000

Q.2 A) Select the appropriate option and Rewrite sentence: 08

1) The concept of equivalent units relevant for _
• Batch Costing • Job Costing
• Process Costing • Service Costing
2) The classification of fixed and variable cost has a special significance in the preparation of _
• Flexible budget • Cash budget
• Capital budget • Zero based budget

3) While evaluating deviations of actual cost from standard cost, the technique used is
• Regression analysis • Variance analysis
• linear Progression • Trend analysis
•

1
7C 15703 103FODD 2AE29C I 3C7 I 79552F8
. ·
-----
 5 9
15 703 3103 3F0DDD2 2AE E29C C13 3C71 179 552
7 5 F
57 031 103F F0D D2AAE2 29C 13C C717 795 52F 87C
0 D 1 5
70 310 03F0 0DD 2A E29 9C1 3C7 7179 955 2F8 87C1 157
31 3F D 2A E2 C 3C 17 55 2F 7C 57 03
31 03F 0D D2A E2 9C 13C 717 955 2F 87C 157 03 103
0 D 1 8 1 F

Q.3
10 3F0 0DD 2A E29 9C1 3C7 7179 9552 2F8 7C1 1570 031 03F 0D
3F DD 2A E2 C1 3C 17 55 F 7C 57 31 03 0D D2
03 0D 2 E 9C 3 71 95 2F 87 15 03 0 F0 D A
F

8)
7)
6)
5)
4)
3)
2)
1)
B)
D A 2 1 C 7 5 8 C 7 1 3F D 2 E2
F0 0DD 2A E29 9C13 3C7 7179 9552 2F8 7C1 1570 0310 03F 0DDD2AAE2 9C1
D 2 E C 1 7 0 9
0D D2 AE 29C 13C C71 795 552F F87C C15 5703 3103 3F0 DD 2AE E29 C13 3C7
D2 AE 29C 13 71 795 52 87 15 70 10 F0 DD 2A 29 C1 C7 179
D2 AE 29C 13 C71 795 52 F87 C15 70 310 3F0 DD 2A E29 C1 3C7 179 552
A 2 C 7 F C 3 3 D 2 E C 3 1 5
2A E2 9C1 13C 717 955 52F8 87C 157 7031 103F F0D D2 AE2 29C 13C C71 795 52F F87C
9 7 1
E2 C1 3C 17 955 2F 7C 57 031 03 0D D2 AE 9C 13 71 795 52F 87 15

 Km
9C 3C 71 95 2F 87C 15 03 03 F0 D AE 29 13 C7 79 52 87 C1 70

 Seats
13 71 795 52 87 15 70 10 F0 DD 2A 29 C1 C7 179 552 F8 C1 570 31
C7 79 52 F8 C1 70 31 3F DD 2A E2 C1 3C 17 55 F 7C 57 31 03

by same amount

Taxes
Petrol
17 55 F8 7C 57 31 03F 0D 2 E2 9C 3C 71 95 2F 87C 15 03 03 F0D

 Increases
95 2F 7C 15 03 03 0D D2 AE 9C 13 71 79 52 87 1 70 10 F0 D

Repairs
20
40
52 87 1 70 10 F0 D A 29 1 C7 79 55 F8 C1 57 31 3F D 2A
F8 C1 57 31 3F D 2A E2 C 3C 17 55 2F 7C 57 03 03 0D D2 E

Permit fee
7C 57 031 03 0D D2 E 9C 13C 71 95 2F 87 15 03 103 F0 D AE 29

Garage Rent
Oil & Grease
15 03 03 F0D D2 AE 29C 13 71 79 52 87 C1 70 10 F0 DD 2A 29 C1

Number of Vans

Road Licenses
70 10 F0 D A 29 1 C7 79 55 F8 C1 57 31 3F D 2A E2 C 3C
 Purchase account

 Remains constant
31 3F D 2A E2 C 3C 17 55 2F 7C 57 03 03 0D D2 E 9C 13 71

office expenses
 Both of the above

Tyres and Tubes

4) Cost Audit is useful _______

03 0D D2 E 9C 13 71 95 2F 87 15 03 10 F0 D A 29 13 C7 79
 To the shareholders
 To the management

F0 D A 29 13 C7 79 52 8 C1 70 10 3F DD 2A E2 C1 C 17 55

Salary of Manager
DD 2A E2 C1 C 17 55 F8 7C 57 31 3F 0D 2 E 9C 3C 71 95 2F

Wages of 60 Drivers
 Investment Companies

Particulars
Invisible waste has no sale value.
2A E2 9C1 3C 717 955 2F8 7C 157 031 03F 0D D2 AE2 29C 13C 71 795 52F 87C

Wages of 60 cleaners
E2 9C1 3C 717 955 2F 7C 157 031 03 0D D2 AE 9C 13 71 795 52F 87 15
9C 3C 71 95 2F 87C 15 03 03 F0 D AE 29 13 C7 79 52 87 C1 70
13 71 795 52 87 15 70 10 F0 DD 2A 29 C1 C7 179 552 F8 C1 570 31
 Stores ledger control account

C7 79 52 F8 C1 70 31 3F DD 2A E2 C1 3C 17 55 F 7C 57 31 03
17 55 F8 7C 57 31 03F 0D 2 E2 9C 3C 71 95 2F 87C 15 03 03 F0D
95 2F 7C 15 03 03 0D D2 AE 9C 13 71 79 52 87 1 70 10 F0 D
52 87 1 70 10 F0 D A 29 1 C7 79 55 F8 C1 57 31 3F D 2A
F8 C1 57 31 3F D 2A E2 C 3C 17 55 2F 7C 57 03 03 0D D2 E
7C 57 031 03 0D D2 E 9C 13C 71 95 2F 87 15 03 103 F0 D AE 29
15 03 03 F0D D2 AE 29C 13 71 79 52 87 C1 70 10 F0 DD 2A 29 C1

Carrying Capacity

2
 CC

70 10 F0 D A 29 1 C7 79 55 F8 C1 57 31 3F D 2A E2 C 3C
31 3F D 2A E2 C 3C 17 55 2F 7C 57 03 03 0D D2 E 9C 13 71

In the breakeven chart cost is shown on the Y axis.

03 0D D2 E 9C 13 71 95 2F 87 15 03 10 F0 D A 29 13 C7 79
 Tones

F0 D A 29 13 C7 79 52 8 C1 70 10 3F DD 2A E2 C1 C 17 55
DD 2A E2 C1 C 17 55 F8 7C 57 31 3F 0D 2 E 9C 3C 71 95 2F

20 passengers each
25 passengers each
 Ca t say

A negative Sales Value Variance is said to be favorable.

State whether following statements are True or False:-
2A E2 9C1 3C 717 955 2F8 7C 157 031 03F 0D D2 AE2 29C 13C 71 795 52F 87C
6) Fixed cost per unit_______ with increase in production.
 Decreases

E2 9C1 3C 717 955 2F 7C 157 031 03 0D D2 AE 9C 13 71 795 52F 87 15

8) Cost Accounting Records Rules are applicable to _______

9C 3C 71 95 2F 87C 15 03 03 F0 D AE 29 13 C7 79 52 87 C1 70
13 71 795 52 87 15 70 10 F0 DD 2A 29 C1 C7 179 552 F8 C1 570 31

AKS transport company maintains a fleet of vans as follows:-

C7 79 52 F8 C1 70 31 3F DD 2A E2 C1 3C 17 55 F 7C 57 31 03

Rs
 To all the above.

2,00,000 per year

5,00,000 per year
2,00,000 per year
4,00,000 per year
8,00,000 per year
6,00,000 per Year
17 55 F8 7C 57 31 03F 0D 2 E2 9C 3C 71 95 2F 87C 15 03 03 F0D

40,000 per month

95 2F 7C 15 03 03 0D D2 AE 9C 13 71 79 52 87 1 70 10 F0 D
 To the government

1,00,000 per month

1,00,000 per month
4,00,000 per month
52 87 1 70 10 F0 D A 29 1 C7 79 55 F8 C1 57 31 3F D 2A
 None of the above

A flexible budget is a budget for semi variable overhead cost only.

F8 C1 57 31 3F D 2A E2 C 3C 17 55 2F 7C 57 03 03 0D D2 E

Cost and financial accounts are reconciled under integrated system.

7C 57 031 03 0D D2 E 9C 13C 71 95 2F 87 15 03 103 F0 D AE 29

10,000 each per month

30,000 each per month
 None of above

daily, ascertain the operating cost per passenger km from following :

15 03 03 F0D D2 AE 29C 13 71 79 52 87 C1 70 10 F0 DD 2A 29 C1

7C15703103F0DD2AE29C13C7179552F8
70 10 F0 D A 29 1 C7 79 55 F8 C1 57 31 3F D 2A E2 C 3C
7) In case of passenger transport , carriage capacity is in terms of _______

31 3F D 2A E2 C 3C 17 55 2F 7C 57 03 03 0D D2 E 9C 13 71
03 0D D2 E 9C 13 71 95 2F 87 15 03 10 F0 D A 29 13 C7 79
 Private Limited Companies

F0 D A 29 13 C7 79 52 8 C1 70 10 3F DD 2A E2 C1 C 17 55
DD 2A E2 C1 C 17 55 F8 7C 57 31 3F 0D 2 E 9C 3C 71 95 2F
2A E2 9C1 3C 717 955 2F8 7C 157 031 03F 0D D2 AE2 29C 13C 71 795 52F 87C
E2 9C1 3C 717 955 2F 7C 157 031 03 0D D2 AE 9C 13 71 795 52F 87 15
9C 3C 71 95 2F 87C 15 03 03 F0 D AE 29 13 C7 79 52 87 C1 70
13 71 795 52 87 15 70 10 F0 DD 2A 29 C1 C7 179 552 F8 C1 570 31
5) Under integrated system of accounting issue of raw material is debited to _______

C7 79 52 F8 C1 70 31 3F DD 2A E2 C1 3C 17 55 F 7C 57 31 03
17 55 F8 7C 57 31 03F 0D 2 E2 9C 3C 71 95 2F 87C 15 03 03 F0D
95 2F 7C 15 03 03 0D D2 AE 9C 13 71 79 52 87 1 70 10 F0 D
 Work-in-progress control account

52 87 1 70 10 F0 D A 29 1 C7 79 55 F8 C1 57 31 3F D 2A
F8 C1 57 31 3F D 2A E2 C 3C 17 55 2F 7C 57 03 03 0D D2 E
7C 57 031 03 0D D2 E 9C 13C 71 95 2F 87 15 03 103 F0 D AE
Q.P. Code :11810
C0511 R/ C0439 ACCOUNTANCY : PAPER II ADVANCED COST ACCOUNTING .

15 03 03 F0D D2 AE 29C 13 71 79 52 87 C1 70 10 F0 DD 2A 2
Operating costing uses the methods of process costing when costing a particular trip by a bus

70 10 F0 D A 29 1 C7 79 55 F8 C1 57 31 3F D 2A E2
31 3F D 2A E2 C 3C 17 55 2F 7C 57 03 03 0D D2 E 9
03 0D D2 E 9C 13 71 95 2F 87 15 03 10 F0 D A 29
F0 D A 29 13 C7 79 52 8 C1 70 10 3F DD 2A E2 C1
DD 2A E2 C1 C 17 55 F8 7C 57 31 3F 0D 2 E 9C
2A E2 9C1 3C 717 955 2F8 7C 157 031 03F 0D D2 AE2 29C 13
E2 9C1 3C 717 955 2F 7C 157 031 03 0D D2 AE 9C 13
The cost auditor is appointed by the board of Directors subject to the approval of Central Government.

9C 3C 71 95 2F 87C 15 03 03 F0 D AE 29 13 C
13 71 795 52 87 15 70 10 F0 DD 2A 29 C1 C7

TURN OVER
Each van makes 5 trips a day. Covering a distance of 10 km in each trip on an average 80% of the seats are
C7 79 52 F8 C1 70 31 3F DD 2A E2 C1 3C 1
occupied in each trip and 10 vans are under repair every day. Assuming that the company operates its fleet
If the selling price and the variable cost decline by the same amount, the contribution per unit will decrease

17 55 F8 7C 57 31 03F 0D 2 E2 9C 3C 71
95 2F 7C 15 03 03 0D D2 AE 9C 13 71 7
52 87 1 70 10 F0 D A 29 1 C7 79
F8 C1 57 31 3F D 2A E2 C 3C 17 5
16
08

7C 57 031 03 0D D2 E 9C 13C 71 95
15 03 03 F0D D2 AE 29C 13 71 79 5
70 10 F0 D A 29 1 C7 79 55
31 3F D 2A E2 C 3C 17 55 2
 5 9
15 703 3103 3F0DDD2 2AE E29C C13 3C71 179 552
7 5 F
57 031 103F F0D D2AAE2 29C 13C C717 795 52F 87C
0 D 1 5
70 310 03F0 0DD 2A E29 9C1 3C7 7179 955 2F8 87C1 157
31 3F D 2A E2 C 3C 17 55 2F 7C 57 03
31 03F 0D D2A E2 9C 13C 717 955 2F 87C 157 03 103
0 D 1 8 1 F

Q.6
Q.5
Q.4
10 3F0 0DD 2A E29 9C1 3C7 7179 9552 2F8 7C1 1570 031 03F 0D
3F DD 2A E2 C1 3C 17 55 F 7C 57 31 03 0D D2
03 0D 2 E 9C 3 71 95 2F 87 15 03 0 F0 D A
F D A 2 1 C 7 5 8 C 7 1 3F D 2 E2
F0 0DD 2A E29 9C13 3C7 7179 9552 2F8 7C1 1570 0310 03F 0DDD2AAE2 9C1
D 2 E C 1 7 0 9
0D D2 AE 29C 13C C71 795 552F F87C C15 5703 3103 3F0 DD 2AE E29 C13 3C7
D2 AE 29C 13 71 795 52 87 15 70 10 F0 DD 2A 29 C1 C7 179

Sales
D2 AE 29C 13 C71 795 52 F87 C15 70 310 3F0 DD 2A E29 C1 3C7 179 552
A 2 C 7 F C 3 3 D 2 E C 3 1 5
2A E2 9C1 13C 717 955 52F8 87C 157 7031 103F F0D D2 AE2 29C 13C C71 795 52F F87C
9 7 1
E2 C1 3C 17 955 2F 7C 57 031 03 0D D2 AE 9C 13 71 795 52F 87 15
9C 3C 71 95 2F 87C 15 03 03 F0 D AE 29 13 C7 79 52 87 C1 70 Direct wages
13 71 795 52 87 15 70 10 F0 DD 2A 29 C1 C7 179 552 F8 C1 570 31
C7 79 52 F8 C1 70 31 3F DD 2A E2 C1 3C 17 55 F 7C 57 31 03
17 55 F8 7C 57 31 03F 0D 2 E2 9C 3C 71 95 2F 87C 15 03 03 F0D
95 2F 7C 15 03 03 0D D2 AE 9C 13 71 79 52 87 1 70 10 F0 D
52 87 1 70 10 F0 D A 29 1 C7 79 55 F8 C1 57 31 3F D 2A

You are required to :

F8 C1 57 31 3F D 2A E2 C 3C 17 55 2F 7C 57 03 03 0D D2 E
Purchase of Materials

7C 57 031 03 0D D2 E 9C 13C 71 95 2F 87 15 03 103 F0 D AE 29 Production overheads

Sales Returns (at cost)

15 03 03 F0D D2 AE 29C 13 71 79 52 87 C1 70 10 F0 DD 2A 29 C1
70 10 F0 D A 29 1 C7 79 55 F8 C1 57 31 3F D 2A E2 C 3C Materials issued to Jobs

Finished Goods produced

31 3F D 2A E2 C 3C 17 55 2F 7C 57 03 03 0D D2 E 9C 13 71
Administration overheads

Sales

Profit
Cost of finished Goods sold
03 0D D2 E 9C 13 71 95 2F 87 15 03 10 F0 D A 29 13 C7 79 Materials issued for Repairs

Material returned from jobs

F0 D A 29 13 C7 79 52 8 C1 70 10 3F DD 2A E2 C1 C 17 55
Particulars

DD 2A E2 C1 C 17 55 F8 7C 57 31 3F 0D 2 E 9C 3C 71 95 2F

Material returned to suppliers

Less: Fixed Cost

2A E2 9C1 3C 717 955 2F8 7C 157 031 03F 0D D2 AE2 29C 13C 71 795 52F 87C

Particulars
Production overheads absorbed
Selling & Distribution Overheads

Units introduced in month - 3900

E2 9C1 3C 717 955 2F 7C 157 031 03 0D D2 AE 9C 13 71 795 52F 87 15

Less: Variable Cost

9C 3C 71 95 2F 87C 15 03 03 F0 D AE 29 13 C7 79 52 87 C1 70

Processing cost incurred in month :

13 71 795 52 87 15 70 10 F0 DD 2A 29 C1 C7 179 552 F8 C1 570 31 Administration overheads absorbed

Labour

Lab our
Material
Material
C7 79 52 F8 C1 70 31 3F DD 2A E2 C1 3C 17 55 F 7C 57 31 03

Particulars

Overheads
Overheads

Work in progress (closing balance) : 800

17 55 F8 7C 57 31 03F 0D 2 E2 9C 3C 71 95 2F 87C 15 03 03 F0D

2. Calculate BEP for each company.

95 2F 7C 15 03 03 0D D2 AE 9C 13 71 79 52 87 1 70 10 F0 D
52 87 1 70 10 F0 D A 29 1 C7 79 55 F8 C1 57 31 3F D 2A
Selling & Distribution overheads recovered
F8 C1 57 31 3F D 2A E2 C 3C 17 55 2F 7C 57 03 03 0D D2 E
7C 57 031 03 0D D2 E 9C 13C 71 95 2F 87 15 03 103 F0 D AE 29

Output transferred to Process B. 36,400 units.

15 03 03 F0D D2 AE 29C 13 71 79 52 87 C1 70 10 F0 DD 2A 29 C1

3
70 10 F0 D A 29 1 C7 79 55 F8 C1 57 31 3F D 2A E2 C 3C
31 3F D 2A E2 C 3C 17 55 2F 7C 57 03 03 0D D2 E 9C 13 71
03 0D D2 E 9C 13 71 95 2F 87 15 03 10 F0 D A 29 13 C7 79

Units scrapped (Completely processed) : 2800 units

F0 D A 29 13 C7 79 52 8 C1 70 10 3F DD 2A E2 C1 C 17 55

3,90,000
3,90,000
7,80,000
5,20,000
DD 2A E2 C1 C 17 55 F8 7C 57 31 3F 0D 2 E 9C 3C 71 95 2F

13,00,000
AB Ltd (Rs)
2A E2 9C1 3C 717 955 2F8 7C 157 031 03F 0D D2 AE2 29C 13C 71 795 52F 87C
E2 9C1 3C 717 955 2F 7C 157 031 03 0D D2 AE 9C 13 71 795 52F 87 15

5. Comment on the profitability of all the companies

9C 3C 71 95 2F 87C 15 03 03 F0 D AE 29 13 C7 79 52 87 C1 70
13 71 795 52 87 15 70 10 F0 DD 2A 29 C1 C7 179 552 F8 C1 570 31
C7 79 52 F8 C1 70 31 3F DD 2A E2 C1 3C 17 55 F 7C 57 31 03
Rs

1. Calculate Contribution / Sales ratio for each company.

17 55 F8 7C 57 31 03F 0D 2 E2 9C 3C 71 95 2F 87C 15 03 03 F0D

Work in progress – Opening balance on 1.1.2017 (1000 units)-

95 2F 7C 15 03 03 0D D2 AE 9C 13 71 79 52 87 1 70 10 F0 D
52 87 1 70 10 F0 D A 29 1 C7 79 55 F8 C1 57 31 3F D 2A

3. Calculate Profits of each company if sales increase by 20%

F8 C1 57 31 3F D 2A E2 C 3C 17 55 2F 7C 57 03 03 0D D2 E

4. Calculate Profits of each company if sales decrease by 20%

Degree of completion : Material – 100%, Lab our & Overheads -50%

7C 57 031 03 0D D2 E 9C 13C 71 95 2F 87 15 03 103 F0 D AE 29

Normal less in processing is 5% of total input and fetch Rs 2 per unit.

15 03 03 F0D D2 AE 29C 13 71 79 52 87 C1 70 10 F0 DD 2A 29 C1

7C15703103F0DD2AE29C13C7179552F8
70,000
80,000

3,000
6,000
8,000
6,00,000
5,00,000
1,30,000
2,10,000
4,50,000
40,000
1,40,000
2,40,000
1,20,000
1,60,000
3,20,000

70 10 F0 D A 29 1 C7 79 55 F8 C1 57 31 3F D 2A E2 C 3C

Rs
31 3F D 2A E2 C 3C 17 55 2F 7C 57 03 03 0D D2 E 9C 13 71

Rs.
03 0D D2 E 9C 13 71 95 2F 87 15 03 10 F0 D A 29 13 C7 79
3,90,000
2,60,000
6,50,000
6,50,000

6400
9600
F0 D A 29 13 C7 79 52 8 C1 70 10 3F DD 2A E2 C1 C 17 55
13,00,000

12800
DD 2A E2 C1 C 17 55 F8 7C 57 31 3F 0D 2 E 9C 3C 71 95 2F
CD Ltd (RS)

2A E2 9C1 3C 717 955 2F8 7C 157 031 03F 0D D2 AE2 29C 13C 71 795 52F 87C

2,12,800
1,44,000
3,72,400
E2 9C1 3C 717 955 2F 7C 157 031 03 0D D2 AE 9C 13 71 795 52F 87 15
9C 3C 71 95 2F 87C 15 03 03 F0 D AE 29 13 C7 79 52 87 C1 70
13 71 795 52 87 15 70 10 F0 DD 2A 29 C1 C7 179 552 F8 C1 570 31
C7 79 52 F8 C1 70 31 3F DD 2A E2 C1 3C 17 55 F 7C 57 31 03
17 55 F8 7C 57 31 03F 0D 2 E2 9C 3C 71 95 2F 87C 15 03 03 F0D

Gar er Ltd. Gi es the follo i g particulars relati g to process A for the o th of Ja ,

95 2F 7C 15 03 03 0D D2 AE 9C 13 71 79 52 87 1 70 10 F0 D
52 87 1 70 10 F0 D A 29 1 C7 79 55 F8 C1 57 31 3F D 2A
F8 C1 57 31 3F D 2A E2 C 3C 17 55 2F 7C 57 03 03 0D D2 E
7C 57 031 03 0D D2 E 9C 13C 71 95 2F 87 15 03 103 F0 D AE
Q.P. Code :11810
C0511 R/ C0439 ACCOUNTANCY : PAPER II ADVANCED COST ACCOUNTING .

15 03 03 F0D D2 AE 29C 13 71 79 52 87 C1 70 10 F0 DD 2A 2

7.
70 10 F0 D A 29 1 C7 79 55 F8 C1 57 31 3F D 2A E2
31 3F D 2A E2 C 3C 17 55 2F 7C 57 03 03 0D D2 E 9
Pass Journal Entries for the following transactions under non-integrated system of accounting:

3,90,000
1,30,000
5,20,000
7,80,000

03 0D D2 E 9C 13 71 95 2F 87 15 03 10 F0 D A 29
13,00,000

F0 D A 29 13 C7 79 52 8 C1 70 10 3F DD 2A E2 C1
EF Ltd (Rs)
AB Ltd, CD Ltd and EF Ltd are working in the same industry. The Profit & Loss details are as under:

DD 2A E2 C1 C 17 55 F8 7C 57 31 3F 0D 2 E 9C
2A E2 9C1 3C 717 955 2F8 7C 157 031 03F 0D D2 AE2 29C 13
E2 9C1 3C 717 955 2F 7C 157 031 03 0D D2 AE 9C 13
9C 3C 71 95 2F 87C 15 03 03 F0 D AE 29 13 C
13 71 795 52 87 15 70 10 F0 DD 2A 29 C1 C7
C7 79 52 F8 C1 70 31 3F DD 2A E2 C1 3C 1
17 55 F8 7C 57 31 03F 0D 2 E2 9C 3C 71
95 2F 7C 15 03 03 0D D2 AE 9C 13 71 7
52 87 1 70 10 F0 D A 29 1 C7 79
F8 C1 57 31 3F D 2A E2 C 3C 17 5
16
16

7C 57 031 03 0D D2 E 9C 13C 71 95
15 03 03 F0D D2 AE 29C 13 71 79 5
70 10 F0 D A 29 1 C7 79 55
31 3F D 2A E2 C 3C 17 55 2
 5 9
15 703 3103 3F0DDD2 2AE E29C C13 3C71 179 552
7 5 F
57 031 103F F0D D2AAE2 29C 13C C717 795 52F 87C
0 D 1 5
70 310 03F0 0DD 2A E29 9C1 3C7 7179 955 2F8 87C1 157
31 3F D 2A E2 C 3C 17 55 2F 7C 57 03
31 03F 0D D2A E2 9C 13C 717 955 2F 87C 157 03 103
0 D 1 8 1 F

Q.9
Q.8
Q.7
10 3F0 0DD 2A E29 9C1 3C7 7179 9552 2F8 7C1 1570 031 03F 0D
3F DD 2A E2 C1 3C 17 55 F 7C 57 31 03 0D D2
03 0D 2 E 9C 3 71 95 2F 87 15 03 0 F0 D A
F D A 2 1 C 7 5 8 C 7 1 3F D 2 E2
F0 0DD 2A E29 9C13 3C7 7179 9552 2F8 7C1 1570 0310 03F 0DDD2AAE2 9C1
D 2 E C 1 7 0 9

C
B
A
0D D2 AE 29C 13C C71 795 552F F87C C15 5703 3103 3F0 DD 2AE E29 C13 3C7
D2 AE 29C 13 71 795 52 87 15 70 10 F0 DD 2A 29 C1 C7 179

Sales
D2 AE 29C 13 C71 795 52 F87 C15 70 310 3F0 DD 2A E29 C1 3C7 179 552
A 2 C 7 F C 3 3 D 2 E C 3 1 5
2A E2 9C1 13C 717 955 52F8 87C 157 7031 103F F0D D2 AE2 29C 13C C71 795 52F F87C
9 7 1

Particulars
E2 C1 3C 17 955 2F 7C 57 031 03 0D D2 AE 9C 13 71 795 52F 87 15
9C 3C 71 95 2F 87C 15 03 03 F0 D AE 29 13 C7 79 52 87 C1 70

Product
product when:
13 71 795 52 87 15 70 10 F0 DD 2A 29 C1 C7 179 552 F8 C1 570 31
C7 79 52 F8 C1 70 31 3F DD 2A E2 C1 3C 17 55 F 7C 57 31 03
17 55 F8 7C 57 31 03F 0D 2 E2 9C 3C 71 95 2F 87C 15 03 03 F0D

3. Key factor.
95 2F 7C 15 03 03 0D D2 AE 9C 13 71 79 52 87 1 70 10 F0 D

Write Notes (Any 4)

52 87 1 70 10 F0 D A 29 1 C7 79 55 F8 C1 57 31 3F D 2A

Variable Overheads
F8 C1 57 31 3F D 2A E2 C 3C 17 55 2F 7C 57 03 03 0D D2 E
Prepare the following:

7C 57 031 03 0D D2 E 9C 13C 71 95 2F 87 15 03 103 F0 D AE 29

e) Sales Quantity
15 03 03 F0D D2 AE 29C 13 71 79 52 87 C1 70 10 F0 DD 2A 29 C1
70 10 F0 D A 29 1 C7 79 55 F8 C1 57 31 3F D 2A E2 C 3C
b. Statement of Cost.

4. Material Variances
31 3F D 2A E2 C 3C 17 55 2F 7C 57 03 03 0D D2 E 9C 13 71

Units
d. Process A Accou t.

Material Cost(Rs 25 per kg)

03 0D D2 E 9C 13 71 95 2F 87 15 03 10 F0 D A 29 13 C7 79

13500
24000
22500
a) Sales value variance
F0 D A 29 13 C7 79 52 8 C1 70 10 3F DD 2A E2 C1 C 17 55

5. Equivalent Production
Lab our Cost (Rs 15 per hour)
DD 2A E2 C1 C 17 55 F8 7C 57 31 3F 0D 2 E 9C 3C 71 95 2F

c) Sales volume Variance

2A E2 9C1 3C 717 955 2F8 7C 157 031 03F 0D D2 AE2 29C 13C 71 795 52F 87C
E2 9C1 3C 717 955 2F 7C 157 031 03 0D D2 AE 9C 13 71 795 52F 87 15

Total fixed Overheads – Rs 5,00,000

9C 3C 71 95 2F 87C 15 03 03 F0 D AE 29 13 C7 79 52 87 C1 70

1. Total sales in Value is Limited

13 71 795 52 87 15 70 10 F0 DD 2A 29 C1 C7 179 552 F8 C1 570 31

2. Cost Audit Report Rules, 2011

C7 79 52 F8 C1 70 31 3F DD 2A E2 C1 3C 17 55 F 7C 57 31 03

2. Raw materials is in short supply

125
375
250

17 55 F8 7C 57 31 03F 0D 2 E2 9C 3C 71 95 2F 87C 15 03 03 F0D

9.00
Standard
95 2F 7C 15 03 03 0D D2 AE 9C 13 71 79 52 87 1 70 10 F0 D
1,250

12.00
10.50
From the following information, calculate:
52 87 1 70 10 F0 D A 29 1 C7 79 55 F8 C1 57 31 3F D 2A
a. Statement of Equivalent Production

F8 C1 57 31 3F D 2A E2 C 3C 17 55 2F 7C 57 03 03 0D D2 E
c. Statement of Apportionment of Cost.

7C 57 031 03 0D D2 E 9C 13C 71 95 2F 87 15 03 103 F0 D AE 29

15 03 03 F0D D2 AE 29C 13 71 79 52 87 C1 70 10 F0 DD 2A 29 C1

4
70 10 F0 D A 29 1 C7 79 55 F8 C1 57 31 3F D 2A E2 C 3C

Rate P.u (Rs)

1. Advantages of Budgetary Control system.

3. Production capacity is the Limiting factor.
31 3F D 2A E2 C 3C 17 55 2F 7C 57 03 03 0D D2 E 9C 13 71
03 0D D2 E 9C 13 71 95 2F 87 15 03 10 F0 D A 29 13 C7 79
F0 D A 29 13 C7 79 52 8 C1 70 10 3F DD 2A E2 C1 C 17 55
DD 2A E2 C1 C 17 55 F8 7C 57 31 3F 0D 2 E 9C 3C 71 95 2F
Product A (Rs. P.U)

2A E2 9C1 3C 717 955 2F8 7C 157 031 03F 0D D2 AE2 29C 13C 71 795 52F 87C
E2 9C1 3C 717 955 2F 7C 157 031 03 0D D2 AE 9C 13 71 795 52F 87 15
9C 3C 71 95 2F 87C 15 03 03 F0 D AE 29 13 C7 79 52 87 C1 70

Units

22500
22500
13 71 795 52 87 15 70 10 F0 DD 2A 29 C1 C7 179 552 F8 C1 570 31

30,000
C7 79 52 F8 C1 70 31 3F DD 2A E2 C1 3C 17 55 F 7C 57 31 03
17 55 F8 7C 57 31 03F 0D 2 E2 9C 3C 71 95 2F 87C 15 03 03 F0D units, find the product mix to yield maximum profits.

_______________________
95 2F 7C 15 03 03 0D D2 AE 9C 13 71 79 52 87 1 70 10 F0 D
52 87 1 70 10 F0 D A 29 1 C7 79 55 F8 C1 57 31 3F D 2A
F8 C1 57 31 3F D 2A E2 C 3C 17 55 2F 7C 57 03 03 0D D2 E
250
750
625

7C 57 031 03 0D D2 E 9C 13C 71 95 2F 87 15 03 103 F0 D AE 29

2,500

15 03 03 F0D D2 AE 29C 13 71 79 52 87 C1 70 10 F0 DD 2A 29 C1

7C15703103F0DD2AE29C13C7179552F8
70 10 F0 D A 29 1 C7 79 55 F8 C1 57 31 3F D 2A E2 C 3C
31 3F D 2A E2 C 3C 17 55 2F 7C 57 03 03 0D D2 E 9C 13 71

Actual
d) Sales mix variance
03 0D D2 E 9C 13 71 95 2F 87 15 03 10 F0 D A 29 13 C7 79
F0 D A 29 13 C7 79 52 8 C1 70 10 3F DD 2A E2 C1 C 17 55
b) Sales Price Variance
DD 2A E2 C1 C 17 55 F8 7C 57 31 3F 0D 2 E 9C 3C 71 95 2F

15.00
12.75
8.250
2A E2 9C1 3C 717 955 2F8 7C 157 031 03F 0D D2 AE2 29C 13C 71 795 52F 87C
E2 9C1 3C 717 955 2F 7C 157 031 03 0D D2 AE 9C 13 71 795 52F 87 15
9C 3C 71 95 2F 87C 15 03 03 F0 D AE 29 13 C7 79 52 87 C1 70
Product B(Rs. P.U)

13 71 795 52 87 15 70 10 F0 DD 2A 29 C1 C7 179 552 F8 C1 570 31

Rate P.u (Rs)

C7 79 52 F8 C1 70 31 3F DD 2A E2 C1 3C 17 55 F 7C 57 31 03
17 55 F8 7C 57 31 03F 0D 2 E2 9C 3C 71 95 2F 87C 15 03 03 F0D
The following particulars are available from the records of a manufacturing company:

95 2F 7C 15 03 03 0D D2 AE 9C 13 71 79 52 87 1 70 10 F0 D
52 87 1 70 10 F0 D A 29 1 C7 79 55 F8 C1 57 31 3F D 2A
F8 C1 57 31 3F D 2A E2 C 3C 17 55 2F 7C 57 03 03 0D D2 E
7C 57 031 03 0D D2 E 9C 13C 71 95 2F 87 15 03 103 F0 D AE
Q.P. Code :11810
C0511 R/ C0439 ACCOUNTANCY : PAPER II ADVANCED COST ACCOUNTING .

15 03 03 F0D D2 AE 29C 13 71 79 52 87 C1 70 10 F0 DD 2A 2
70 10 F0 D A 29 1 C7 79 55 F8 C1 57 31 3F D 2A E2
31 3F D 2A E2 C 3C 17 55 2F 7C 57 03 03 0D D2 E 9
03 0D D2 E 9C 13 71 95 2F 87 15 03 10 F0 D A 29
F0 D A 29 13 C7 79 52 8 C1 70 10 3F DD 2A E2 C1
DD 2A E2 C1 C 17 55 F8 7C 57 31 3F 0D 2 E 9C
2A E2 9C1 3C 717 955 2F8 7C 157 031 03F 0D D2 AE2 29C 13
E2 9C1 3C 717 955 2F 7C 157 031 03 0D D2 AE 9C 13
9C 3C 71 95 2F 87C 15 03 03 F0 D AE 29 13 C
13 71 795 52 87 15 70 10 F0 DD 2A 29 C1 C7
C7 79 52 F8 C1 70 31 3F DD 2A E2 C1 3C 1
4. Total availability of raw materials is 15,000 kg. and maximum sales potential of each product is 800

17 55 F8 7C 57 31 03F 0D 2 E2 9C 3C 71
95 2F 7C 15 03 03 0D D2 AE 9C 13 71 7
Product A & B are manufactures in a same plant from a certain material. Comment on the profitability of each

52 87 1 70 10 F0 D A 29 1 C7 79
F8 C1 57 31 3F D 2A E2 C 3C 17 5
16
16

7C 57 031 03 0D D2 E 9C 13C 71 95
15 03 03 F0D D2 AE 29C 13 71 79 5
70 10 F0 D A 29 1 C7 79 55
31 3F D 2A E2 C 3C 17 55 2